Impact of foreign direct investment, human capital on the economic growth of Puerto Rico
DOI:
https://doi.org/10.21803/adgnosis.12.12.569Keywords:
Economic growth, Human capital, Foreign direct investmentAbstract
During the past decades, disruptive events have been
experienced, which have brought drastic changes in the
economy, quality of life and other aspects of humanity.
Puerto Rico has not been the exception and because it is an
island and a US territory it limits negotiations with foreign
countries. In the past, the island had economic incentives
that allowed it to develop the economy and attract foreign
direct investment. It is interesting to see how both variables
have varied in the periods of this investigation. Its general
objective is to explore the relationship between Investment
in Human Capital and Foreign Direct Investment on
the island and how it impacts economic development
measured by Gross Domestic Product. The methodology
of this research is quantitative using government databases
and analyzing the data through multiple regression models
divided into three historical periods to compare the study
variables, investment in human capital and foreign direct
investment against gross domestic product. to determine if
any have a positive impact on the economic growth of the
island. The main finding is that, in the periods analyzed,
investment in human capital and foreign direct investment
contributed to the economic growth of Puerto Rico, with
human capital being the variable with the greatest impact.
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